KUALA LUMPUR - Following the United States’ ban on palm oil imports from FGV Holdings Bhd over allegations of labour abuse, another major player in the plantation sector is expected to face a similar fate soon.
This was revealed by Human Resources Minister Datuk Seri M Saravanan who, however, refused to divulge further information until such action is taken.
“I was told that another big firm will be banned soon,” he told reporters when met during a programme at Menara Manikavasagam here, today.
Pressed further if he had any knowledge on which company would be banned by the US, Saravanan merely said: “Another big (firm) in the plantation sector.”
Saravanan said this when commenting on reports yesterday that the US has decided to ban palm oil imports from FGV after allegations surfaced over the company’s use of forced labour in the production process.
In a statement, the US Customs and Border Protection (CBP) said it had discovered abuse of vulnerable workers, deception, physical and sexual violence, intimidation and threats, and retention of documents during a year-long investigation.
It also raised concerns over potential use of child labour in the production process.
In response, FGV has expressed disappointment over the US ban, claiming that the firm has been taking concrete steps over the past several years to address the issue, including by upholding labour standards.
The world’s largest crude palm oil producer also said the issues raised by CBP have been the subject of public discourse since 2015. He claimed that the group had acted on them.
Commenting on the ban, Saravanan said the government already had knowledge of the American decision earlier this week, but was taken aback by the timing and manner in which it was imposed.
“I was already informed by the US Ambassador to Malaysia, Kamala Shirin Lakhdir, a couple of days ago but didn’t expect the ban to come so soon,” he said.
“Anyway, I have asked my officers to go to the ground to get more information. I was also told that the issue (alleged abuses) is mainly in Sabah and Sarawak, about the workers there and how children are involved,” he said.
Saravanan also pointed out that this was why the government pushed for the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446) to be implemented as soon as possible.
The legislation has received objections from various quarters, with the Malaysia Employers' Federation and Federation of Malaysian Manufacturers consistently calling for it to be postponed.
Act 446 came into force on Sept 1.
“This is the reason why I’ve been telling I wanted to implement Act 446. It is to address issues like this,” Saravanan said.
Asked whether the allegations of labour abuse in FGV was due to the previous Pakatan Harapan’s (PH) failure to crack down on the matter, the minister said it was unfair to put the blame solely on them.
“The issue could have been long overdue. It may not necessarily be them (PH), we never know. It’s unfair to just blame the previous government, as it is not overnight,” he said. - The Vibes, October 1, 2020
